Gas Laws: Boyle's, Charles's and Avogadro's Law

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Questions and Answers

How does a well-functioning loanable funds market influence a firm's decision to borrow?

  • It discourages firms from investing in resources for growth.
  • It has no impact on the firm's investment decisions.
  • It ensures firms have access to capital for investment in resources, supporting growth. (correct)
  • It leads to decreased government spending.

What is the significance of investment in relation to GDP, according to the loanable funds market?

  • Investment is necessary for output (GDP), requiring borrowing, which in turn requires savings. (correct)
  • Investment is independent of borrowing and savings.
  • Investment leads to decreased output and GDP.
  • Investment has no relation with either GDP, savings, or borrowing.

According to the perspective of suppliers in the loanable funds market, how should interest rates be viewed?

  • As a fixed entity irrespective of market demands.
  • As a governmental control measure.
  • As an irrelevant factor in the cost of consumption.
  • As the opportunity cost of consumption. (correct)

What role do households play in the loanable funds market?

<p>Savers (B)</p> Signup and view all the answers

What entities participate in the loanable funds market?

<p>Savers and borrowers (D)</p> Signup and view all the answers

How do firms generally utilize borrowed funds in their operations?

<p>To invest in resources for growth. (A)</p> Signup and view all the answers

What is the role of commercial banks within the loanable funds market?

<p>They provide a platform for savings and loans. (B)</p> Signup and view all the answers

From a borrower's perspective, what does the interest rate primarily represent?

<p>Cost of Borrowing. (A)</p> Signup and view all the answers

What is the effect of higher interest rates on the incentive to save?

<p>Increases the incentive. (C)</p> Signup and view all the answers

According to the loanable funds market, which is the most accurate sequence?

<p>Prepare to Produce -&gt; Produce -&gt; Sell Output. (B)</p> Signup and view all the answers

Where would you most likely find stocks and bonds?

<p>Loanable Funds Market (A)</p> Signup and view all the answers

What does the sale of output most directly fund?

<p>Paying workers and lenders (C)</p> Signup and view all the answers

How is the price of Loanable Funds quoted?

<p>Quoted as percentage of the original loan amount. (C)</p> Signup and view all the answers

What roles do firms play in the Loanable Funds Market?

<p>Firms participate as borrowers. (C)</p> Signup and view all the answers

From a demander's perspective, what is the interest rate based on?

<p>Anticipated rate of return based on probabilities of all possible outcomes (C)</p> Signup and view all the answers

Besides commercial banks, what other financial institutions are included in the loanable funds market?

<p>Mutual fund firms, investment banks, and the stock exchange (D)</p> Signup and view all the answers

What would happen if there was no properly working loanable funds market?

<p>Future GDP dries up. (A)</p> Signup and view all the answers

Which of the following is NOT a listed participant of the loanable funds market?

<p>Charities (C)</p> Signup and view all the answers

Which of these relies on borrowing, according to Loanable Funds Market concepts?

<p>Investment (B)</p> Signup and view all the answers

What happens as the interest rate increases?

<p>The incentive to save increases (A)</p> Signup and view all the answers

Flashcards

Loanable Funds Market

Market that brings together savers (supply) and borrowers (demand).

Savers

Households, Foreign Entities.

Borrowers

Firms, Government.

Loanable Funds Market Places

Commercial banks, investment banks, mutual fund firms, and stock exchanges.

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Why Firms Borrow

Firms need to invest in resources (labor, land, capital) to grow.

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Interest Rates

Price of loanable funds, quoted as a percentage of the original loan amount.

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Borrowing leads to Production

Prepare to produce -> Produce -> Sell output.

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Output (GDP) Requires...

Output requires investment, investment requires borrowing, borrowing requires savings.

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Interest Rate (Supplier POV)

Opportunity cost of consumption; incentive to save.

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Interest Rate (Demander POV)

Anticipated rate of return based on the probabilities of possible outcomes.

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Study Notes

  • Gases are compressible and expandable, completely fill containers, and have lower densities than liquids and solids.

Gas Pressure

  • Pressure is the force per unit area exerted by gas molecules on container walls.
    • $Pressure = \frac{Force}{Area}$
  • Pascal (Pa): the SI unit of pressure, $1 Pa = 1 \frac{N}{m^2}$.
  • Other pressure units:
    • 1 atm = 760 mmHg = 760 torr = 101.325 kPa
    • 1 bar = $10^5$ Pa

The Gas Laws

  • These laws describe relationships between gas volume (V), pressure (P), temperature (T), and the number of moles (n).

Boyle's Law

  • At constant temperature and number of moles, gas volume is inversely proportional to pressure: $V \propto \frac{1}{P}$.
    • $P_1V_1 = P_2V_2$

Charles's Law

  • At constant pressure and number of moles, gas volume is directly proportional to absolute temperature: $V \propto T$.
    • $\frac{V_1}{T_1} = \frac{V_2}{T_2}$
  • Use Kelvin for temperature: $T(K) = t(°C) + 273.15$

Avogadro's Law

  • At constant pressure and temperature, gas volume is directly proportional to the number of moles: $V \propto n$.
    • $\frac{V_1}{n_1} = \frac{V_2}{n_2}$

The Ideal Gas Law

Ideal Gas Law

  • The ideal gas law combines Boyle's, Charles', and Avogadro's laws: $PV = nRT$.
  • The ideal gas constant is $R = 0.08206 \frac{L \cdot atm}{mol \cdot K} = 8.314 \frac{J}{mol \cdot K}$.
  • Standard Temperature and Pressure (STP) is $0°C$ (273.15 K) and 1 atm.
  • At STP, one mole of an ideal gas occupies 22.4 L, which is the standard molar volume.

Gas Density and Molar Mass

  • Density is $d = \frac{m}{V}$
  • Molar mass is $M = \frac{m}{n}$
  • Use the ideal gas law to find density: $d = \frac{PM}{RT}$
  • Use the ideal gas law to find molar mass: $M = \frac{dRT}{P}$ or $M = \frac{mRT}{PV}$

Gas Mixtures and Partial Pressures

Dalton's Law of Partial Pressures

  • The total pressure of a gas mixture equals the sum of each gas's partial pressures: $P_{total} = P_1 + P_2 + P_3 +...$
    • $P_i = n_i \frac{RT}{V}$

Mole Fraction

  • The mole fraction of a gas in a mixture is the ratio of its moles to the total moles: $X_i = \frac{n_i}{n_{total}}$
  • A gas's partial pressure equals the total pressure times its mole fraction: $P_i = X_i \cdot P_{total}$

The Kinetic Molecular Theory of Gases

Main Assumptions

  • Gas particle size is negligible compared to the space between them.
  • Gas particles move randomly and continuously.
  • Collisions between particles and container walls are elastic (kinetic energy is conserved).
  • There are no intermolecular forces between gas particles.
  • The average kinetic energy of gas particles is proportional to absolute temperature.

Kinetic Energy and Root Mean Square Speed

  • Average kinetic energy is $KE_{avg} = \frac{3}{2}RT$
  • Root mean square speed is $u_{rms} = \sqrt{\frac{3RT}{M}}$, where M is molar mass in kg/mol.

Graham's Law of Effusion

  • The rate of effusion is inversely proportional to the square root of molar mass: $\frac{Rate_1}{Rate_2} = \sqrt{\frac{M_2}{M_1}}$
  • Effusion: gas escaping through a small hole.

Real Gases: Deviations from Ideal Behavior

Real Gases

  • Real gases deviate from ideal behavior at high pressure and low temperature.
    • Intermolecular forces exist between gas particles.
    • Gas particles have a finite volume.

van der Waals Equation

  • The van der Waals equation corrects for deviations from ideal behavior: $[P + a(\frac{n}{V})^2](V - nb) = nRT$
    • $a$ accounts for intermolecular forces.
    • $b$ accounts for the finite volume of gas particles.
    • $a$ and $b$ are van der Waals constants specific to each gas.

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